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2022 (11) TMI 630 - AAR - GSTClassification of services - Supply of services or not - Job Work - work of Chocolate Manufacturers, Confectionery Manufacturers, Food Product Retailers, Sugar Coated Chocolate Manufacturers - HELD THAT:- The applicants are undertaking the work of Chocolate Manufacturers, Confectionery Manufacturers, Food Product Retailers, Sugar Coated Chocolate Manufacturers. They are “Job Work provider” doing job work of manufacturing chocolates (food product falling under Chapter 19 of customs tariff Act) with inputs provided by the “job work receiver”. The final product is also owned by the applicants’ supplier - the supply of the applicant is that of 'supply of Service'. From SAC 9988, it is clear that this heading covers those services characterized as outsourced portions of a manufacturing process. In the case at hand, the job work done by the applicant is a portion of manufacturing process of the customer of the applicant and therefore, the activity of the applicant is covered under SAC 9988 - the activity of undertaking manufacturing services by a registered person on the physical inputs owned by another registered person is a Job work'. In the case at hand, the applicant is a registered person and when he undertakes work on the goods belonging to another registered person, then the nature of work of the applicant is job work". The SAC of the Service Offered by applicant is “998816” i.e., “Other food product manufacturing services” and the rate of tax as seen from the above entry is 2.5 % CGST and 2.5% SGST.
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